12 December 2011

Cornwall Is Britain's Bankruptcy Capital

A report published on Monday has revealed Cornwall is Britain's most bankrupt county.

The report, from Debt advice charity Consumer Credit Counselling Service (CCCS), showed areas of England with the highest bankruptcy levels.

The results showed rural communities had been hit hard, with Cornwall, Northumberland, Devon and Lincolnshire charting highest in most bankruptcies per 10,000 of population.

CCCS external affairs director Delroy Corinaldisaid: "This is likely to result from a mix of factors such as high debt levels and less job opportunities than you would find in large urban areas."

Meanwhile, debt expert Martyn Saville at consumer group Which? said that many people would be shocked by the list.

"Far from being restricted to traditional areas of high unemployment, such as former industrial heartlands, these statistics from CCCS show that unmanageable debt is a problem that affects the whole country.

"If you're struggling with your finances, there are places that can help. Organisations like the CCCS, National Debtline and Citizens Advice all offer free and impartial debt advice. Don't use a commercial debt management company."

The report comes only days after another study by CCCS raised concerns about the number of redundancies reported by the Office for National Statistics (ONS), saying many of those affected would now struggle to repay their debts.

The debt charity made the warning as the ONS published statistics on ‘Reasons for Leaving Last Job - 2011’ on Friday, which found that 43% of those leaving their last job in the second quarter of 2011 did so as a result of redundancy.

CCCS said redundancy and unemployment often led to debt problems and was the biggest causes of debt among those seeking its help.

The charity says that these clients were likely to be particularly financially vulnerable.

CCCS clients receiving Jobseekers Allowance (JSA) were in the worst financial position of all its clients, with monthly outgoings outstripping household income by £203.

(DW)